Well positioned to deliver growth? – Scorpio Tankers Inc. (STNG), Zion Oil & Gas Inc. (ZN)

Scorpio Tankers Inc. (NYSE: STNG) shares are -71.10% down in the year-to-date (YTD) period and have moved -6.88% or -$0.84 lower in the latest trading session. However, stock’s trailing 12-month performance remains nearly +1.25% lower. Comparatively, the stock is -71.89% down YTD and -35.91% over the trailing 3-month period. If we look at the shorter duration, its week performance is -9.19% and -18.20% over the month.

Analyst Recommendations

On March 09, 2020, DNB Markets recommended the STNG stock is a Hold, while earlier, Stifel had Upgrade the stock as a Buy on March 09, 2020. 12 analysts offering the recommendations for the stock have a consensus rating of 2.10 to suggest that the STNG stock is a “Moderate Buy. 1 of the 12 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 9 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $11.37. The forecasts give the Scorpio Tankers Inc. stock a price target range of $45.00 on the higher side while at least one analyst think the stock could plunge to a low of $13.80. The two limits represent an upside potential of 74.73% or 17.61%.

Earnings Forecast

Analysts estimate the earnings to decrease -16.70% in the current quarter to -$0.19, up from the -$0.92 reported in the same quarter a year ago. For the current year, earnings should grow to an average of $3.5, up 49.90% from -$0.94 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$1 and $1. Wall Street estimates earnings per share to be at an average of $2.51 for the next year.

Zion Oil & Gas Inc. (NASDAQ:ZN), on the other hand, is trading around $0.32 with a market cap of $65.63M and analyst research firms have a negative stance on its shares. Some analysts are even forecasting $0 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the Zion Oil & Gas Inc. (ZN) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

ZN’s operating expenses over the recent quarter were at -$1.92 million. This represented a 213.85% of the company’s total revenues which amounted $1.69 million. With this in place, we can see that the company’s diluted EPS declined -$0.01 on the year-over-year period, shrinking to -$0.02 as given in the last earnings report.

In terms of the balance sheet & cash flow as of Current Qtr., the total assets figure advanced to $27.88 million from $26.18 million over the previous quarter. Short term investments amounted to $2.05 million while total current assets were at $10.96 million. The cash flow from operating activities totaled -$2.96 million, significantly lower than the -$2.42 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$8.1 million.

Insider activity

Insiders have transacted a total of 2 times at Zion Oil & Gas Inc. over the last 6 months, with insider purchases undertaken 2 times and accounting for 120,000 shares. Insider sales totaled 0 shares over the same period, with these deals completed in 0 transactions. Looking at these numbers, we realize that net purchases over that period are 2.0 shares. Insiders now hold a total of 13.36M shares after the latest sales, with 0.90% net shares purchased.

Major holders

Insiders own 0.40% of the company shares, while shares held by institutions stand at 5.00% with a share float percentage of 194.41M. Investors are also buoyed by the number of investors in a company, with Zion Oil & Gas Inc. having a total of 55 institutions that hold shares in the company. The top two institutional holders are Vanguard Group, Inc. (The) with over 6.88 million shares worth more than $2.05 million. As of Jun 29, 2020, Vanguard Group, Inc. (The) held 3.35% of shares outstanding.

The other major institutional holder is Geode Capital Management, LLC, with the investment firm holding over 1.01 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $0.3 million and represent 0.49% of shares outstanding.